Report_Organic Agriculture in Cambodia _COrAA_ April 2011_ final- for web_3

Report
Organic Agriculture and Food Processing
in Cambodia
Status and Potentials
Prepared by the
Cambodian Organic Agriculture Association (COrAA)
April 2011

The Cambodian Organic Agriculture Association (COrAA) is a nationwide alliance
for the promotion of organic agriculture. It was founded in 2006.
COrAA’s Objectives
• To assist farmers/producers in the conversion from conventional to organic farming
• To raise awareness on the health, environmental, social and economic benefits of
organic production
• To conduct inspections and provide certification for products that meet the organic,
chemical-free and wild harvest standards
• To support and encourage the marketing of organic products
• To encourage relevant research for the development of organic agriculture
• To support organic agriculture actors in dialogue with government, donor
organizations and international organic agriculture movements
Cambodian Organic Agricultural Association (COrAA)
# 44A, Street 320
Sangkat Boeung Keng Kang III
Khan Chamkar Mon
Phnom Penh
Kingdom of Cambodioa
E-mail: info@coraa.org
http://www.coraa.org

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Table of Contents
Abbreviations and Acronyms............................................................................................. 4
Introduction........................................................................................................................... 5
Certified organic products.................................................................................................. 7
Scope and methodology.................................................................................................... 8
Rice ...................................................................................................................................... 9
Background ....................................................................................................................... 9
Organic rice production ................................................................................................... 14
Status of certification ....................................................................................................... 17
Market ............................................................................................................................. 18
Potentials and Constraints............................................................................................... 26
Vegetables.......................................................................................................................... 28
PUAC - The Peri-Urban Agricultural Centre..................................................................... 29
Vegetable producers cooperating with CEDAC ............................................................... 32
International Volunteer Center of Yamagata (IVY)........................................................... 35
Other vegetable growers ................................................................................................. 36
Conclusion ...................................................................................................................... 37
Cashew Nut ........................................................................................................................ 38
Palm Sugar......................................................................................................................... 44
Pepper ................................................................................................................................ 48
Fruits................................................................................................................................... 51
A few considerations and suggestions ................................................................................ 53
Distributors of organic and chemical-free food products .................................................. 56
Persons contacted for this report..................................................................................... 57
References...................................................................................................................... 58

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Abbreviations and Acronyms
ADG Aide au Développement
Gembloux, Belgian NGO
CARDI Cambodian Agricultural Research
and Development Institute
CDRC Community Cooperative for Rural
Development
CEDAC Cambodian Center for Study and
Development in Agriculture
CIDS Cambodian Institute of
Development Study
CIRD Cambodian Institute for Research
and Rural Development
CIM Centrum für internationale
Migration und Entwicklung (CIM)
is a joint operation of GIZ and the
International Placement Services
(ZAV) of the Federal Employment
Agency
DANIDA Danish Development Cooperation
DED Deutscher Entwicklungsdienst,
German Development Service,
since 2011: GIZ
DGRV Deutscher Genossenschafts- und
Raiffeisenverband e.V.
GERES Groupe Energies Renouvelables,
Environnement et Solidarités
GIZ Deutsche Gesellschaft für
Internationale Zusammenarbeit
GMP Good Manufacturing Practice
GTZ Deutsche Gesellschaft für
Technische Zusammenarbeit
(since 2011: GIZ)
GTZ-CB-
RDP
GTZ Community Based Rural
Development Project
GTZ-PSP GTZ Private Sector Promotion
Program
GTZ-TPC GTZ Trade Promotion Cambodia
HACCP Hazard Analysis & Critical Control
Points
ICS Internal Control System (part of
an organic guarantee system)
IFC International Finance Corporation
IFOAM International Federation of
Organic Agriculture Movements
ILO International Labour Organization
IVY International Volunteers of
Yamagata
MAFF Ministry for Agriculture, Forestry
and Fisheries
MoC Ministry of Commerce
NAP Natural Agri-Products (brand,
initially also marketing program of
CEDAC)
NGO Non-Government Organization
OPOP One Province One Product Expo
(Exhibition)
PDoC Provincial Department of
Commerce
PUAC Peri Urban Agriculture Center
RUA Royal University of Agriculture
SKC
(SKL)
SAHAKREAS CEDAC Ltd.
SME Small Medium Enterprises
SNV Dutch Development Organization
SRI System of Rice Intensification
WCS Wildlife Conservation Society

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Introduction
Organic farming as a movement is still a relatively young branch of agriculture compared to
10,000 years of crop cultivation and animal husbandry. It was only in the 1930s and 1940s
that several initiatives began to explore alternatives to conventional agriculture. Since then
organic agriculture has advanced considerably and is recognized by most governments as
an essential approach to cope with food security and food safety.
Based on agriculture statistics from 160 countries, the 2009 data show that thirty-seven
million hectares of agricultural land worldwide are farmed organically. The countries with the
largest area of organic agricultural land are Australia, Argentina and the USA. Compared to
the previous year, the organic land area increased by two million hectares, or six percent,
worldwide. 1
The market research company Organic Monitor estimated the global market for organic
products in 2009 at 55 billion US dollars (€40 billion), roughly 5 percent more than in 2008.
The largest amount of organic products is sold in Europe and North America. In Europe,
over €18 billion were spent, with Germany leading at €5.8 billion, followed by France (€3
billion) and the United Kingdom (€2.1 billion). The countries with the highest per capita
spending were Denmark and Switzerland with more than €130 annually.2
Cambodia is certainly a latecomer on the international organic agriculture scene.
Cambodia’s neighbor Thailand, for example, has already a long record of recognized organic
agriculture. It was only in 2006 several NGOs, entrepreneurs, development programs
conducted by international donors and individuals in government ministries established the
Cambodian Organic Agriculture Association (COrAA). COrAA was established as a domestic
organization where Cambodian stakeholders, especially those from the private-sectors will
have ownership and take leadership in promoting organic agriculture in Cambodia (in
contrast to a rather donor-promoted organic agriculture movement).
Although Cambodia is somewhat late in building a domestic organic sector and has limited
capacity to advise interested farmers and entrepreneurs as well as to certify organic
1
These figures are from the 12th edition of The World of Organic Agriculture.
http://www.fibl.org/fileadmin/documents/en/news/2011/press-release-world-of-organic-110215.pdf
2
as above

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operations, Cambodia has some advantages in terms of organic production. For some crops
such as rice or cashew, many farmers have never really accepted the propagated intensive
use of farm chemicals. An exception is, unfortunately, conventional vegetable sector where
farmers use pesticides too often indiscriminately.
Although a considerable number of farmers in Cambodia still cultivate especially rice with
little use of synthetic fertilizers and almost no pesticides; they do not necessarily farm
organically as their practices might further exhaust the soil. At any rate, they do not improve
the fertility of the soil. In many areas particularly rice yields are still on stable low level.
Contrary to the public opinion, organic agriculture is much more than farming without
chemicals. Organic agriculture has evolved largely in critique of and as an alternative to an
industrial style of agriculture and agribusiness that are detrimental to the environment.
Visionaries, theorists and enthusiasts from all over the world realize that mainstream
agriculture has numerous undesirable implications. The main problem is the increasing use
of external inputs, namely fertilizer and pesticides that fulfilled for a short time the promise of
increased yields, but not necessarily increased incomes. The experiences are similar,
wherever modern agriculture is practiced.
Unlike agribusiness and conventional agriculture that are based on concepts that simplify
reality and techniques that make them unsustainable, organic agriculture is rooted on the
metaphor of ecology. It is emphasizing co-evolution with - and not the domination of -
nature. It is based on an understanding and study of the ecological context, biological
processes as well as socio-economic relationships. In this notion, human well-being is
inseparable from that of the land community. In addition, organic agriculture is grounded on
a set of methods, technologies and tools that guide the agricultural practice.
From the consumer perspective, the most important feature is the healthiness of the food.
Besides the purity of the product, consumers increasingly want to be sure that the product
was produced without agrochemicals and not exposed to high levels of pollution. Hence, the
promotion of good agricultural practices and chemical free cultivation should be considered
as steps in the right direction.
As consumers commonly do not meet the producers, it is difficult for consumers to trust
products sold with the claim to be produced organically. In fact, the term has been widely
misused. To overcome the predicament, many organizations have taken pains to formulate
standards which guide producers and serve as basis for inspection and certification. Since
the British Soil Association came up with the first organic standards in 1967, many

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organizations around the world have followed to set similar standards and to set up
certification system.
COrAA’s Organic Standards guide producers wishing to comply with the organic standards.
They should convert their whole farms to a sustainable organic farming system and may not
use any chemical fertilizer or other chemical substances such as pesticides and fungicides.
Fertilization and crop protection must follow organic procedures as outlines in the standards.
After a conversion period of three years, a farm can be certified as organic. COrAA’s
Standard is based on The IFOAM Standard for Organic Production and Processing3
which
has served as reference in the formulation of countless organic standards around the world.
Certified organic products
Based on a definition by the International Federation of Organic Agriculture Movements
(IFOAM), "Certified organic products are those which have been produced, stored,
processed, handled and marketed in accordance with precise technical specifications
(standards) and certified as "organic" by a certification body. Once a certification body has
verified conformity with organic standards, the product can be labeled as such. It is important
to note that an organic label applies to the production process, ensuring that the product has
been produced and processed in an ecologically sound manner. The organic label is
therefore a production process claim as opposed to a product quality claim".4
Certification
requires producers to record activities in their farms as well as the purchases of inputs and
sales of crops or food.
In general, only products that comply with the relevant standards and are certified can be
called organic. In this way, organic already defines a guaranteed quality standard, unlike
other labels such as ‘natural’, ‘eco-friendly’ or ‘biological’. The use of the latter is not
controlled by an independent agency but can be applied by producers freely.
Group certification
In view of small farms and relatively small quantities an inspection of individual farms by a
certifier is for most crops too costly, the concept of group certification was developed to
enable smallholders to access organic markets. This scheme allows developing countries
also to commercialize their organic products at the international level at reasonable cost.
3
IFOAM, 2005. The IFOAM Standard for Organic Production and Processing
http://www.ifoam.org/about_ifoam/standards/norms/norm_documents_library/IBS_V3_20070817.pdf
4
IFOAM. FAQ, http://www.ifoam.org/sub/faq.html

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Groups of organic producers therefore need to establish an Internal Control System (ICS) as
part of a documented quality assurance system that allows an external certification body to
delegate the periodical inspection of individual group members to an identified body or unit
within the certified operator. This means that the third party certification bodies only have to
inspect the well-functioning of the system, as well as to perform a few spot-check re-
inspections of individual smallholders. In Cambodia, group certification is applied in rice and
cashew production. Small scale vegetable growers are considering utilizing this approach as
well.
Scope and methodology
In this report we look chiefly into the status as well as the opportunities of the production,
processing and marketing of several organic and chemical-free food products in Cambodia.
Without doubt, in terms of the number of farmers rice is the most important sector, yet
surprisingly the organic cashew sub-sector has made considerable advances and involves
almost ten times more families than organic or chemical-free vegetable production.
Information on organic pepper, fruits and palm sugar products are included as well. The
study does not cover non-timber forest products and animal products,
Much the information provided here is based on interviews with key persons as well as on
recent reports or presentations. For the background information, the team has utilized vari-
ous documents, which to a great extent originate from development projects. Most of them
have been published or are accessible on the web, but some documents just have been
shared among experts working on various aspects of organic or sustainable agriculture.

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Rice
Rice is by far the most important agricultural produce in Cambodia. About 70 percent of
Cambodia’s population depends on rice cultivation which covers about 75 percent of the
arable land.
Since some decades, rice yields in Cambodia are among the lowest in Asia. This is chiefly
attributed to low soil fertility.5
Only about ten percent of the farms have access to irrigation.
Compared to most Asian countries, Cambodian farmers use relatively little inputs and a
considerable number of rice farmers never have used farm chemicals. However, only a small
portion of the produced rice has been certified as organic.
Background
In the year 2003, several programs led by GTZ, OXFAM Quebec and the NGO CEDAC
began promoting the production of organic rice among famers. One intention was to obtain
rice which could meet the increasing demand for organic rice in industrialized countries.
Organic rice was thought to diversify the export earnings of the garment sector.6
The
Cambodian government, especially the Ministry of Commerce (MoC), supported by GTZ and
CIM, supported the emerging organic sector and to explore opportunities for exports.
However, Cambodian rice millers did not warm up until today to the potentials organic rice
could offer. Due to the rice crisis in 2008, which triggered a sudden interest in Cambodian
rice, the focus shifted fully to the export of conventional rice.
So far, only a few containers of organic rice have been exported, yet the domestic market for
organic rice has developed noticeably. In 2010, about 1,000 tons of milled organic rice was
sold, most of it through CEDAC’s shops. Nevertheless, this quantity comprises only a very
small share of the rice market in Phnom Penh, approximately 0.5 percent. what is the
volume of organic rice demand in Cambodia?
5
USDA Commodity Intelligence Report, 2010.CAMBODIA: Future Growth Rate of Rice Production
Uncertain, http://www.pecad.fas.usda.gov/highlights/2010/01/cambodia/
6
Launey, Guy De, 2005. Cambodia targets organic market, 17 October 2005,
http://news.bbc.co.uk/2/hi/asia-pacific/4350290.stm

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Of the first initiatives, the cooperatives initiated by the Rural Development Program of the
GTZ in Kompong Thom and Kampot province have continued to produce of organic rice
although they encounter various problems in their undertakings.
The Community Cooperative for Rural Development (CDRC) in Pursat, which received
support from several international NGOs, discontinued its interest in the organic sector after
a planned export of organic rice to Germany failed in 2006. The Danida IPM project, which
supported organic rice farmers in Battambang province, discontinued due to land tenure
problems. Farmers’ groups cooperating with CDRC and Danida IPM already had been
certified by international certifiers.
At the onset, especially the GTZ development program and the NGO CEDAC promoted
principles of the System for Rice Intensification (SRI) which enabled farmers to reduce the
use of chemical inputs and many farmers eventually met the criteria of organic agriculture.
During the past two years, over 8,000 hectares of rice land have been cultivated organically.
The production of organic rice has focused on aromatic varieties as the initiating agencies
and programs anticipated that consumers wishing to eat organic rice would prefer these
varieties.
Most organic farmers plant several varieties and consider the aromatic rice varieties, which
achieve the highest price, as a cash crop. Farmers cultivate traditional varieties such as
Somali, Neang Malis and Phka Malis. GTZ distributed also the CARDI variety Phka Rumduol
which was derived through a selection process from the traditional variety Somali. All
varieties are photoperiod sensitive and only grow during the rainy season. They are well
suited for rainfed lowland conditions and are also drought resistant which enables the plants
to endure longer dry spells during the rainy season, a trait high yielding varieties planted in
irrigated fields no longer have.
Organizations involved in organic rice production
1. Rice farmers' cooperatives initiated by GTZ in Kampong Thom and Kampot Province
a) Stung Sen Agriculture Development Cooperative
Stung Sen district, Kampong Thom Province, 116 members, 178 hectares
b) Trapaeng Russei Commune Agriculture Development Cooperative
Kampong Svay district, Kampong Thom Province, 71 members, 89 hectares

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c) Mithapheap Prashsrey Agriculture Development Cooperative
Stong District, Kampong Thom Province, 91 members, 61 hectares
d) Srer Cheng Organic Agriculture Development Cooperative
Srer Cheng Commune, Chum Kiri district, Kampot Province, 202 members, 295
hectares
The establishment of these cooperatives was initiated by the Community Based Rural
Development Program (CB-RDP) of the German Gesellschaft für Technische
Zusammenarbeit (GTZ). The agricultural component of the CB-RDP chiefly helped the
members of the cooperatives to improve rice cultivation. Besides, the program assisted the
members in enhancing their livestock and fish-raising activities, vegetable production and
horticulture. The CB-RDP project ended on December 31, 2007
With the improvement of the rice production, the farmers increasingly produced marketable
surpluses and subsequently shifted to a market oriented production. In this context, the
production of organic rice and other crops emerged as an alternative to improve farmers’
incomes. The potential for organic rice production was identified in December 2002. On the
one hand, it was realized that due to the low level of chemical inputs, rice farmers could
easily shift to organic practices. It was also expected that Cambodian organic rice could
meet a ready export markets. On the other hand, it was expected that through the promotion
of organic practices farmers would not be tempted to intensify production with the use of
agro chemicals.7
The forerunners of the cooperatives, various Organic Rice Producer Associations, were
founded in 2003. During the project term, GTZ had initiated one cooperative in each
province. The report of an inspection of the Kampong Thom cooperative conducted by
COrAA in early 2010 indicated that the cooperative had considerable difficulties to manage
its ICS system. Consequently, COrAA suggested conducting a workshop. The original Stung
Sen Agriculture Development Cooperative encompassed the members of the Trapaeng
Russei as well as of the Mithapheap Prashsrey Agriculture Development Cooperative. The
restructuring was decided in March 2010.It had become clear that the management
problems were chiefly due to the coverage of too many districts which are far apart from
each other. The cooperative had no longer the means to cope with the needs of the
members in the different districts. As a result, among others, the internal control system
7
Rosenkranz, J, 2002. Potentials for Market Oriented Organic Farming, Cambodia, Report on Short
Term Consultancy for the Agriculture Component GTZ Rural Development Program in Kampot and
Kampong Thom Provinces, Cambodia

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(ICS) had not been efficient. The results of the internal inspections conducted during the
2010/2011 season showed that the cooperatives had already improved the management of
the ICS.
The members of the cooperatives have adopted the System of Rice Intensification (SRI) as
an improved low-external input system. This served as a starting point for the conversion
towards the organic production of rice. Rice seeds planted by the farmers include Phka
Rumduol, Phka Malis, Phka Khney as well as deep water rice varieties.
2. CEDAC
The Cambodian NGO CEDAC (Centre d'Etude et de Développement Agricole Cambodgien)
has actively promoted sustainable rice cultivation along principles of the Systematic Rice
Intensification (SRI) since 1999. After the successful adoption of sustainable practices
following the System of Rice Intensification (SRI) which helps farmers in improving
productivity and reducing the use of external inputs, an increasing number of farmers were
able to produce rice completely without agro-chemicals. Many of them soon were able to
produce a surplus which met the criteria of organic agricultural production.
At the onset, the need for an established market channel for organic products was
perceived. However, rice traders had no interest in organic rice and too often were cheating
farmers with manipulated scales. Organic farmers, on the other hand, needed to realize a
higher price for their efforts to assure an organic quality. A higher price serves also as an
incentive for others to shift to organic cultivation.
As a result, CEDAC ventured into rice marketing in 2003; initially, CEDAC started buying
milled rice from individual farmers for retailing in Phnom Penh. However, due to the fact that
CEDAC interacted only with individual farmers, only 10 tons were acquired that time. The
quality of the milled rice was inadequate for the urban market due to the low standard of the
mills in the provinces.
As a consequence, CEDAC decided to buy paddy instead from the farmers and store and
process it in Phnom Penh. This led to the creation of CEDAC’s Natural Agriculture Products
Marketing Program (NAP) in 2005. The program facilitated the set-up of organic rice
producer groups in seven provinces including Kampong Cham, Kampong Thom, Kampong
Chhnang, Kampot, Takeo and Kampong Speu, mostly within a radius of 100 km around
Phnom Penh, the capital city of Cambodia. The province Siem Reap was also recently
included.

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The primary target group is small farmers who are producing rice essentially for their
subsistence, but are able to generate surpluses of at least 500kg of jasmine rice per family
and other varieties of high value, such as Phka Khney.
In this phase it was realized that it was difficult to provide customers a sufficient proof that
the rice was organically produced. Consequently, CEDAC came up with the Natural
Standards for Plant Production which serves as the binding guideline since the year 2005.
Earlier, CEDAC and the producer groups had started to set up an organic guarantee system.
Per group, one farmer was selected and trained as “internal inspector” who is tasked to
assure that the participating farmers follow the standards. The work of the internal inspectors
is supervised by CEDAC. During this period, GTZ’s CB-RDP program and CEDAC
cooperated and shared experiences in several ways.
During the first years, CEDAC staff acted as facilitators and trainers in tandem with
CEDAC’s Natural Agri-Products marketing program (NAP). The NAP program conveyed
technical skills as well as business skills to the farmers participating in organic producer
groups. Interventions towards consumers were advocacy work, dissemination of product
information as well as information on issues pertaining to food safety, agricultural production
and food processing. In addition, customer surveys have been conducted.
In November 2007, representatives of clusters of producer groups founded the National
Federation of Organic Rice Producer Groups, which represents all producers.
End of 2009, the NAP program eventually was converted into the company SAHAKREAS
CEDAC (CEDAC Enterprise), which is the primary buyer as well as wholesaler and retailer
of organic rice.
At the height of the expansion of it organic rice program in 2008, CEDAC involved about
7,800 farmers in 790 producer groups (associations). However, due to the financial crisis in
autumn 2008, an anticipated loan arrangement failed and consequently CEDAC was only
able to buy 1,380 tons of raw rice (paddy) from 2,532 farmers of 386 groups. The plan at that
time was to procure about 4,000 tons. During the 2009/10 harvest about 1,800 organic
farmers sold almost 1,500 tons of paddy to CEDAC.
Based on the 127 respondents of a survey conducted by a CEDAC team in May 2010, the
members cultivate on average 1.99 hectare, while the members of the organic rice producer
cooperatives in Kampong Thom cultivate on average about 1.2 hectare rice land.

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3. Other organizations
There are several of smaller local initiatives promoting the cultivation and marketing of
organic rice in Cambodia such as the PunLue NetKdey SanKhem (PNKS) in Prey Veng
province which started promoting organic rice in 2009. As of early 2011, the initiative
involves 185 families in 28 groups. The farmers cultivated about 45 ha organically resulting
to 87 tons of organic paddy. Of this quantity, PNKS was able to by 13 tons at a price of 1400
riel/kg while 74 tons were bought by local traders of conventional rice at 1100 riel/kg. The
groups have established and ICS system, but it is not covered by a certification scheme.
Also several provinces support the marketing of fragrant rice in ‘One Province One Product’
fairs. According to representatives of the provinces Pursat and Preah Vihear during the
recent OPOP Trade Fair in Phnom Penh (December 2010), farmers commonly produce the
rice without chemical inputs. However, the farmers are not organized and could not provide
evidence on the agricultural practices.
A special case is the Ibis rice program of the Wildlife Conservation Society (WCS) Cambodia
Program, which encourages practices which do not endanger wildlife and do not lead to
further expansion of farmland at the expense of the wildlife, particularly the ibis. The rice is
marketed by the local NGO Sansom Mlup Prey (SMP) which buys products at a premium
from village marketing networks (VMN), whose members are made up of farmers who are
often not food secure and rely on forest resources for income.8
For the recent season, the
program intended to procure 120 tons of paddy from participating farmers.
Organic rice production
Most organic rice producers follow the principles of the System of Rice Intensification (SRI)
which serve as an entry point to sustainable rice cultivation. Usually farmers cannot
implement all the suggested twelve principles, nevertheless the principles enable them to
completely avoid the use of farm chemicals and increase the organic fertilization instead.
There are no sufficient data on the yields of organic farms, but most farmers do obtain
similar yields to their conventional neighbors. According to the Department of Planning and
Statistics of Ministry of Agriculture, Forestry, and Fisheries, the average yield for the rainy
season 2007/2008 was 2.3 metric tons per hectare.9
. However, in some areas organic rice
8
For details see: http://www.smpcambodia.org/Home/tabid/2658/Default.aspx
9
http://www.foodsecurity.gov.kh/RiceYield.aspx

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farmers obtain average yields slightly below two tons per hectare while farmers who are able
to plant green manure crops such as beans obtain 3.5 to 5.4 metric tons.10
Yet, following the principles of SRI in combination with sound organic practices allow some
farmers to obtain more than four tons per hectare. The highest reported yield obtained by an
organic farmer is 7 tons/hectare. Most farmers rely solely on compost to fertilize the poor
soils. However, commonly the amount of compost the farmers can generate and the
available cow manure is not sufficient to improve the yields.
Only a smaller group of the organic rice farmers are practicing green manuring, the planting
of crops such as mung bean (Vigna radiata) or rice bean (Vigna umbellata) before or after
the rice crop (when the land is vacant) with the purpose to incorporate the generated
‘biomass’ into the soil. Besides a lack of knowledge, the common practice of letting cattle
and water buffalos freely graze on the rice land during the off season hinders farmers to
successfully grow green manure crops.
Costs compared to conventional rice production
Based on a study conducted by An Kimheng in 2008, the production costs for organic rice do
not significantly differ from conventional production. Organic farmers spent less on inputs;
however, they had higher costs for labor.11
Studies in other countries show that farmers benefit from organic cultivation since they need
almost no external inputs and consequently less capital. In view of the fact that most capital
comes from informal loans, the paid interests are significant and make often conventional
rice production a losing business. Yet, generally low yields limit farmers’ revenues from
organic rice cultivation.
Rice seeds
Like the rural development program the GTZ, CEDAC provided farmers interested in organic
rice production and marketing with seeds of jasmine rice, mostly the variety Phka Malis.
Especially in the preparation of export orders, CEDAC realized that many farmers still do not
fully appreciate the importance of rice seed selection. The paddy contained varying degrees
of other varieties and small grains. Especially disturbing were red grains which are not
allowed in brown rice exported to the US. As these grains have to be removed and achieve a
10
Personal communication with members of the Srer Cheng Organic Agriculture Development
Cooperative, Kampot province, 04/03/2011
11
An Kimheng, 2009. Factors Effecting Farmers’ Adoption of Organic Rice Cultivation in Cambodia,
Case Study of Damrei Romeal Organic Rice Federation Cooperative in Tramkok District, Takeo
Province, Tokyo University of Agriculture and Technology Graduate School of Agriculture.

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price similar only to broken grains, about 50 percent of the milled rice. Hence, the purity of
the seeds affects the profitability. CEDAC consequently advised farmers and other
stakeholders to focus on rice seed selection during harvest and before sowing to improve
yield and grain quality.12
Climate change
Producers of organic rice solely plant in rainfed fields. Thus, the success of the cultivation
depends on timely rainfall. In the recent years, many organic farmers increasingly had to
cope with deviations in weather patterns. The most common problem was delayed
transplanting due to late rains. In 2010 the preparation of the seed nurseries was delayed by
about one month. In some villages, where farmers had managed to sow the rice early on, an
outbreak of army worms devastated the established seedbeds.
Some areas, for example in Takeo and Kompong Speu, suffered more often from drought
than other areas. Rainfall patterns differ quite a lot even within provinces. Other problems
experienced are heavy rain falls and strong winds during flowering period which reduced the
number of filled grains per panicle. This phenomenon was responsible for the low yield in the
organic farms in Kampong Thom province which had already been planted late due to the
late onset of the rainy season in 2010.
In view of possible greater disturbances in future due to changing weather pattern caused by
global warming, the risk of harvest failures is likely to increase. Farmers, however, can
reduce the risk by significantly improving the humus (organic matter) content of the soil. This
improves among others the capacity of the soil to absorb and retain water; thus, compared
to soils of low organic matter content, dry spells do not immediately affect the crop. By
improving soil fertility through the recycling of organic matter and the planting of green
manure crops, farmers increase the carbon content of the soil. By binding atmospheric
carbon, soils act as carbon sinks. In this way, organic farmers can contribute to a lessening
of greenhouse gas emissions. Organic farmers are employing closed nutrient cycles within
their farm and consequently do not need inputs such as nitrogen fertilizers. These are
produced in industrial processes which require a lot of energy and thus release significant
amounts of carbon. As organic farmers do not apply nitrogen fertilizers in their fields; they
also minimize the emissions of nitrous oxide, a gas which considerably contributes to global
warming.
12
CEDAC. 2010. Rice Selection Important in Improving Yields, www.cedac.org.kh/ev_pdf089.pdf
(June 14, 2010)

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Status of certification
Early on, organic rice producer groups cooperating with CEDAC as well as the cooperatives
supported by the GTZ CB-RDP project have set up internal control systems which allow the
certification of groups instead of individual farmers. In mid-2003, CEDAC facilitated a first
round of training for participants from several programs and initiatives13
. The first ICS
inspections took place after transplanting in September 2004.
The cooperatives in Kampong Thom and Kampot had been certified by international
certifiers in the years 2004, 2005 and 2006. In 2007 the GTZ management had asked the
cooperatives for a significant counterpart contribution to the costs. No agreement was
achieved, leaving the cooperatives in a limbo concerning the organic status of their produce.
Consequently, COrAA improvised a training for local inspectors and conducted inspection.
Both cooperatives obtained a certificate. While the cooperative in Kampong Thom was able
to maintain its internal control system and to obtain external inspection and certification, the
Chum Kiri Organic Rice Cooperative in Kampot failed to continue internal inspections.
Also in 2008 and 2009 COrAA conducted inspections, however in 2009 no certificate was
granted due to the deficiencies in the internal control systems. As a consequence, the
cooperative structure was revised and COrAA retrained the (internal) ICS inspectors.
COrAA assisted also the inspections conducted by the internal inspectors.
CEDAC maintains a kind of dual system. All producer groups maintain an Internal Control
System (ICS) and CEDAC as ICS operator supervises the internal inspectors and
consolidates the data. Likewise, CEDAC conducts trainings for the internal inspectors every
year.
Since 2007, CEDAC facilitates the inspection and certification by an IFOAM accredited
certifier of the Damrei Romeal Organic Rice Producer Cooperative Federation in Takeo,
which supplies rice for the international market. This cooperative which covers 35 villages in
4 communes supplied the rice for export at the end of 2009. In 2007, the cooperative had
456 members who cultivate a total of 599 hectare organic rice land. In 2009, about 250
members supplied certified organic rice.
For the bulk of the supply” for the ‘Natural Agri Products’ brand, CEDAC does not distinguish
paddy from sources which are ‘organic in transition’ and which are fully ‘organic’.
13
Anonymous, 2003. Report on the internal control system training, 10
th
-23
rd
July 2003.

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One problem bothering organic programs is the so-called parallel production. Many farmers
produce in some fields organically while in others they continue to farm conventionally. While
risks of comingling of organic and conventional rice can be excluded by the planting of
different varieties which can easily be distinguished, farmers who continue some
conventional cultivation cannot achieve the fully organic status (based on COrAA’s
Standards for Crop Protection as well as on the EU Organic Regulation.) Due to the parallel
production, many farmers use all the compost and manure they can generate in the organic
fields while the conventional fields do not receive any compost, thus the conventional fields
are further deprived of natural fertility which also lowers the effectiveness of synthetic
nitrogen fertilizer.
Although the cooperatives of organic rice farmers have obtained certification, they still have
to improve their recording system and the monitoring of the respective ICS systems. No
matter, how plausible their organic production is, the external inspection has to rely to a
great extent on the records of the ICS. If data are inconsistent or records are lacking it still
can result in the denial of the certification by the certifier. More often, certificates are granted
with obligation to correct the deficiencies within a certain period.
Another common problem is that most stakeholders have difficulties to ensure the
traceability of their produce. This requires a code for each producer and an appropriate way
of marking of sacks at each processing level and a correlating recording system.
Market
Cooperatives and Producer Groups
Producer groups and cooperatives have two major functions: to combine the produce to
achieve some economies of scale and to assure the organic integrity of the produce by
facilitating internal controls. So was the initiation and formation of organic rice producer
groups instrumental for CEDAC’s expansion in the organic rice sector.
Over a period of five years, the number of organic rice producer groups increased from 18 in
2003 to 790 by the end of 2008 and the membership grew from 253 in the first year to more
than 7,800 farmers in 2008. For this work with the producer groups including training for
leaders and internal inspectors, CEDAC received small funds from several donors such as
SEED (Supporting Entrepreneur for Environment and Development) and the German
Development Service (DED), now GIZ.

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Several cooperatives and many organic rice producer groups also engage in group savings
as way to mobilize small funds for improvements. The groups also use their monthly
meetings to exchange information about their farming experiences.
Survey among members of organic rice producer groups initiated by CEDAC
In an effort to evaluate the achievements, a CEDAC team conducted a survey among 127
members of 12 producer groups in May 2010. The survey focused on the achievements of
the groups and the satisfaction of its members.
Generally, the respondents confirmed that the producer groups and the trading of organic
rice have contributed to an improvement of their livelihoods, even though in many instances
the members could not always realize the expected higher prices compared to the
conventional market (due to the intensive competition among CEDAC and local rice traders).
Nonetheless, most members expressed that without organized groups, they could not have
achieved a better price for their produce. Together they are able to negotiate a more
favorable paddy price.
As the Federation of Organic Rice Farmers and CEDAC agree at the onset of each season
on the buying price based on the regional and local markets including a premium of at least
10 percent, they help farmers who are not part of the program as well. In many districts
paddy prices for fragrant varieties generally increased due to CEDAC’s intervention and the
resulting competition. While commonly paddy prices decrease to some extent during the
harvest season, the opposite was observed since 2006 in areas were CEDAC buys fragrant
rice.
Local rice traders, who are keen to buy their jasmine rice which is also high in demand in
neighboring Vietnam, try to outmaneuver CEDAC. They buy wet and unclean paddy for a
price similar as the one agreed by CEDAC and the Federation whereas CEDAC requires dry
paddy of good quality. However, frequently traders try to cheat the farmers with manipulated
scales.
On the other hand, respondents mentioned that CEDAC often is late to buy the paddy. Since
many families have financial constraints, a considerable number of members had decided to
sell their produce or a part of it to traders.
The respondents mentioned that they benefit as well from the development budget provided
by CEDAC at the end of the season based on the volume of paddy supplied. These funds
enabled them to pursue, for example, infrastructure projects. Likewise, they appreciate that
they were able to improve their cultivation skills by adopting principles of the System of Rice

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Intensification (SRI) which help them to achieve higher yields. At the same time, the group
members acquired knowledge on chicken, pig and fish raising.
All respondents reported that they understand the effects of chemical fertilizers and
pesticides as they had joined trainings conducted by CEDAC’s staff. As they value their
health, they are determined to stay away from harmful chemical pesticides. However,
several respondents disclosed that they cannot produce enough compost for all their fields.
Consequently they apply the chemical fertilizers in fields far away from the villages which are
not included in the organic scheme.
Most of the respondents agreed, even though they experienced some difficulties in the
cooperation, the involvement in the organic rice trading has benefitted their families as well
as the environment.14
Branding
In order to facilitate the sales of rice, both GTZ and CEDAC respectively established brand
names. Whereas GTZ was targeting the domestic market as well as the export market,
CEDAC exclusively focused on the domestic market and considered exports only when
approached by foreign companies.
Saravan Rice
The brand Saravan Rice
15
was introduced in 2005 by several initiatives including the GTZ
CB-RDP project to promote and marketing of organic rice in the domestic market. The brand
name Saravan Rice was also considered as an option for the export promotion. The quantity
of the production by organic farmers in the provinces Kampong Thom, Kampot, Pursat and
Battambang was estimated about 300 tons (2005). Especially the organic rice farmers in
Kampong Thom were able to utilize the brand name. However, currently sales under this
brand name have ceased.
14
CEDAC, 2010. CEDAC-NAP Bulletin, 1-2010, p1.
15
Schmerler, C., 2006. Value Chain Promotion: Experiences with Organic Rice from Cambodia, GTZ.

Supply chain for Saravan Rice as envisioned in 2006.
Below: Design of the package for milled rice
Page 21 of 58
Supply chain for Saravan Rice as envisioned in 2006.
Design of the package for milled rice

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Natural Agri-Product
Following GTZ, CEDAC created the Natural Agri-Product brand which is chiefly used for rice
but also for products such as palm sugar and rice wine.
Premium price
CEDAC as well as the cooperatives have some troubles to abide by the promised premium
price which serves as an incentive for organic farmers and rewards them for their efforts,
especially for the organic guarantee system.
For several years it was difficult to fully achieve the target of a 10 percent higher price due to
the interference of rice traders or their agents who offered prices similar to those agreed by
the Federation and CEDAC.
However, for the harvest 2008/2009 CEDAC could fulfill its promise to pay producers an
over 10 percent higher price than conventional farmers received for the same kind of quality
(1,100 Riel/kg - 4197 Riel = 1 US Dollar, Nov. 26, 2009). CEDAC paid the organic farmers
1,250 Riel on average or 13.6 % more. This price does not include payments by CEDAC-
NAP to the development fund of the Producer Groups between 50 and 100 Riel per kilogram
paddy delivered in the years 2007 and 2008. The respective amounts were paid at the end
of a business year.
Post harvest practices
In order to improve the milling quality of its rice CEDAC spent efforts to inform farmers about
appropriate harvest and post harvest practices. An 8-page brochure for farmers was
distributed in 2007 and reprinted in 2010. Apparently the quality of the paddy increased as
well as the awareness of the leaders in-charge of the procurement on group level. However,
until 2009/10, CEDAC had no scheme in place to reward the delivery of well dried and clean
paddy.
One particular problem is that CEDAC and cooperatives can buy only well dried paddy
(moisture content 14 percent) while the traders offer to buy fresh paddy at a competitive
price disregarding the organic quality. In view of the weight loss due to drying and the labor
cost, paddy with moisture content of 14 percent need to achieve about 10 percent higher
price than fresh paddy which has a moisture content of over 20 percent.

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Especially CEDAC’s intervention triggered in many districts a competition with local traders
who are keen to buy their jasmine rice which is also high in demand in neighboring Vietnam.
Consequently the paddy prices for fragrant varieties generally increased. The Federation of
Organic Rice Farmers and CEDAC agree at the onset of each season on the buying price
based on the regional and local markets including a premium of at least 10 percent. As the
traders try to outmaneuver CEDAC, farmers who are not part of the program benefit as well.
SAHAKREAS CEDAC reported early February that it was able to buy 2,000 tons from 2,668
farmers in 332 groups during the 2010/11 harvest season so far. The company intends to
buy a total of 2,200 tons.
Milling
For milled rice CEDAC is able to supply high quality (5 percent broken grains). The miller
chiefly contracted by CEDAC for the domestic market improved the equipment during the
recent years. This helped for example to significantly lower the content of foreign matter
such as small stones.
For export, CEDAC cooperated with the government owned company Green Trade which
had obtained a state-of-the art rice processing unit in mid 2009. This allowed CEDAC to
meet the requirements of the US importer (based on the US Rice Standard.)
Benefits envisioned by SAHAKREAS CEDAC
(http://www.organic.moc.go.th/upload/SpeakerPresentation/5)%20Cambodia%20-
%20Bun%20Penhpheak.pdf?Mode=1&amp%3Bamp%3BpGroup=0520Bun%20Penhpheak.pdf?Mode=1&amp%3Bamp%3Bp
Group=05)

Financing
A common problem that actors in the organic r
access to capital. As a result the cooperatives
produce of their members. In 2006, the Kampot cooperative
47 percent of the organic paddy.
Apparently, this trend continued, thus most of the more than 200 tons of organic rice
produced by the members of the Srer Cheng Organic Agriculture Development Cooperative
enters the conventional channel.
CEDAC encountered a severe problem as an expected loan arrangement failed in the
course of the global finical crisis in autumn 2008. CEDAC consequently had to cut its
procurement plans. Later CEDAC
finance its rice operation.
Unfortunately the Cambodian
collateral lending; they still prefer
made it difficult to obtain loans to support rice
bank ACLEDA is now prepared to offer 50% lending against commodity as collateral
16
Sreng Sopheak, The study of the organic rice value chain and the potential crops for organic
produce in Kampot and Takeo provinces, Cambodia, University de Tours ,October 2009
0
500
1000
1500
2000
2500
10
metrictons
CEDAC- NAP Paddy procurement
Page 24 of 58
A common problem that actors in the organic rice business encounter is the l
the cooperatives could buy only a smaller share of the organic
. In 2006, the Kampot cooperative, for example,
47 percent of the organic paddy. In 2008, the share declined to almost 24 percent.
enters the conventional channel.
encountered a severe problem as an expected loan arrangement failed in the
procurement plans. Later CEDAC was able to tap several foreign social investment funds t
Unfortunately the Cambodian banks commonly do not facilitate a commodity
; they still prefer to extend loans against fixed assets. In the past t
it difficult to obtain loans to support rice trading. This is changing, and the Cambodian
bank ACLEDA is now prepared to offer 50% lending against commodity as collateral
udy of the organic rice value chain and the potential crops for organic
125
480
1200
1380
1490
2200
Year
NAP Paddy procurement
ice business encounter is the lack or the
could buy only a smaller share of the organic
was able to buy
In 2008, the share declined to almost 24 percent.16
encountered a severe problem as an expected loan arrangement failed in the
was able to tap several foreign social investment funds to
a commodity-based
In the past this has
This is changing, and the Cambodian
bank ACLEDA is now prepared to offer 50% lending against commodity as collateral.
udy of the organic rice value chain and the potential crops for organic

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Exports
The German rice trader Rickmers Reismühle which had turned to Cambodia to diversify its
sources of conventional rice also aimed to explore the market for organic rice in Europe. A
first trial delivery was scheduled late 2006 with CDRC as supplier. At that time of the
preparation on the Cambodian side, however, Rickmers encountered a considerable
problem as shipments of US rice which the company had received were contaminated with
genetically modified rice. Rickmers consequently had to make sure that this rice was not
sold in the European Union and encountered finical constraints. As a result, it was not able
to finalize the order for Cambodian organic rice. CDRC’s management was frustrated and
gave up on the idea of export.
In 2007, Cambodia Biologicals Co. Ltd. (New Rain Organics brand) succeeded to ship
certified organic rice to Europe.
Rickmers Reismühle got in contact with CEDAC and a cooperation agreement was signed
by both parties end of 2007. CEDAC, however, had first difficulties to supply due to the ‘rice
crises’ in 2008 during which the Cambodian government issued a temporary export ban.
Later CEDAC established that it could not meet the required milling quality. Only when the
government owned Green Trade had setup its new processing line mid 2009, it became
possible to meet quality standards such as 5 percent broken grains. By that time, however,
Rickmers, which focuses on large-scale consumers, had realized difficulties with the sales of
Thai organic rice and did not pursue its plans to order rice from CEDAC any longer.
Parallel, CEDAC had developed a partnership with the US company Lotus Foods17
which
concentrates on rice specialties. After a long preparation and overcoming countless
obstacles, CEDAC succeeded to export one container of brown Phka Malis rice in December
2009. In October 2010 Lotus Foods signaled its strong interest to continue imports from
Cambodia. For 2011, SAHAKREAS CEDAC plans to export 200 metric tons of milled rice.
So far, the organic rice sector could not positively respond to requests by importers for
example, from Malaysia and Spain, who are interested to import Cambodian organic rice.
17
http://www.lotusfoods.com/

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Potentials and Constraints
Production
Cambodian farmers plant many traditional varieties which are very suitable for organic
production. Among these are also several aromatic varieties. Aromatic rice comprises about
15 percent of rice world trade.18
Yet, taking into account that consumers of organic rice are
general willing to pay a higher price, a focus on aromatic varieties appears to be appropriate.
However, domestic customers of organic rice are also keen to avail of non-aromatic varieties
such as Pkhar Khney, Neang Minh, and Neang Khon.19
In view of the low fertility of most soils, Cambodian organic farmers could benefit more by
giving extra attention to farm-based soil fertility management. Several Cambodian organic
farmers, who obtain yields per hectare twice or even three times as high as the average
yield, serve as models. Through the consequent use of compost and green manure crops
they have gradually increased the fertility of their fields. This enables them to have good
harvests of excellent grains. Fertile soils have a much greater capacity to hold water and can
help crops to survive longer dry spells. Thus, comprehensive organic practices help farmers
to enhance the resilience of crops to better withstand adverse climate conditions. When
discussing strategies to improve yields in a sustainable manner, most Cambodian farmers
can learn a lot from these model farmers.
Regular seed selection and good post harvest practices will contribute to an improved grain
quality and thus increase not only yields per hectare, but also the milling results (un-broken
grains), and thus the overall economic result.
In view of that many farmers are still producing rice basically without farm chemicals and that
over 110,000 farmers (as of 2009) of have learnt to improve rice cultivation based on the
principles of System of Rice Intensification (SRI) especially through the work of CEDAC’s by
involving farmer trainers, there are still a significant number of farmers who could produce
rice organically. Also other NGOs in various provinces promote sustainable practices among
rice farmers. However, to market organic rice, farmers must be open to join groups to enable
group certification.
Market
Taking into account, that there are more than over 8,500 rice producers who have been
members of organic rice producer groups or cooperatives during the recent three years, and
that on average each member produces at least 1,000 kg of organic rice annually, about
18
Slayton, Tom, 2009. Road Map for Cambodian Rice Exports, unpublished.
19
CEDAC, 2009. Customer Network Building” in the neighborhoods of CEDAC Shops in Phnom
Penh, Results of a study, compiled by Chhim Phallyboth, unpublished.

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8,500 tons of organic rice would be available, if the groups and cooperatives could find
interested buyers. (The members interviewed in the CEDAC evaluation produced on
average 1.3 tons of Phka Malis, the members of the Srer Cheng Organic Cooperative
produce on average over one ton of fragrant rice).
While a part of the producers could realize a premium price, the retail prices do not
necessarily reflect the premium. Most of the time, CEDAC offers its rice at an only slightly
higher price than conventional fragrant rice of comparable quality. Although there is an
increasing awareness of the benefits of organic products among consumers, it has not
necessarily resulted in a willingness to pay a higher price.
As Cambodia produces since several years a considerable surplus of rice, the prospects for
exports of organic rice improve. Concerning the export of rice, Cambodia has to take into
account that the world rice market is dominated by its neighbors, Vietnam and Thailand. As
a smaller producer, Cambodia might benefit more, if it could utilize niche markets. The
demand for organic rice is increasing in several Asian countries. Cambodia can offer
varieties and qualities for niche markets the Thai producers do not cover.20
Since October 2009, Cambodian products including rice enjoy a preferential access to the
EU market. While exports of conventional rice to Europe have increased substantially, the
organic sector has not utilized this arrangement.
However, organic growers can only realize the benefits for their extra efforts only, if the
cooperatives and associations can find business partners who are interested in a long term
partnership. Such a partnership would require trust building measures on both sides and
investments in the organic guarantee systems of the farmers’ organizations.
20
As of 2008, 2'498 organic farms with 21,701 hectare were (certified) organic in Thailand, this
equivalent to 0.1% of agricultural land. Of this 17'328 ha were planted with organic rice
Source: IFOAM, 2008. The World of Organic Agriculture, Statistics and Emerging Trends.

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Vegetables
While several agricultural sectors are able to produce a significant surplus, the vegetable
sector in Cambodia is dominated by imports from Vietnam and Thailand which together
supply 40 to 50 percent of the vegetables consumed in the country. According to the
Vietnam Business News, during 2010, Cambodia imported 70-80 tons of vegetables per
day.21
The massive importation of vegetables is affecting most Cambodian stakeholders in the
vegetable sector. Due to the massive importation of Vietnamese vegetables, prices in
Phnom Penh are significantly lower than in provincial towns. Given this condition, for many
vegetable growers, including the organic growers, there is little incentive to deliver to
wholesalers in Phnom Penh. This predicament makes it even more difficult to build reliable
supply chains of local vegetables of good quality.
Yet, consumers are increasingly becoming aware of the problems related to the production
practices of conventional vegetables. Unfortunately, many conventional vegetable growers in
Cambodia indiscriminately use pesticides on their crops. Commonly they are unaware of the
effects on their and the consumers health. This is aggravated by the fact that most
pesticides sold have no label in Khmer so that farmers have no way to understand any
instruction or warning on the package or bottle.
Consequently it is not surprising that vegetables supplied to Phnom Penh markets contain
pesticides residues. Tests conducted on 245 leafy vegetables and long bean samples from
several markets in Phnom Penh in 2010 revealed that between 15 percent (long bean) and
95 percent (white stemmed kale) contain detectable level of pesticides called organo-
phosphate and carbamate pesticides22
which include commonly used insecticides, many of
them ranked as hazardous.
In this challenging environment, several initiatives and entrepreneurs promote chemical –
free or organic vegetable production and explore possible markets.
21
Vietnam Business News, 2010. An Giang to tap Cambodian vegetable market,
http://vietnambusiness.asia/an-giang-to-tap-cambodian-vegetable-market/
22
Neufeld, D.S.G. et al. 2010. Prevalence and Persistence of Organophosphate and Carbamate pesticides in
Pesticides in Cambodian Market Vegetables. Asian Journal of Water, Environment and Pollution, Volume 7,
Number 4 / 2010, http://iospress.metapress.com/content/wn9776111t681437/

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PUAC - The Peri-Urban Agricultural Centre
The pioneering initiative in this sector is the Peri-Urban Agricultural Center (PUAC) which
was created in 2001. Supported by the Belgian NGO Aide au Développement Gembloux
(ADG), PUAC works for the improvement of the living conditions of Cambodian farmers
through the production of high value vegetable.23
The objective was to strengthen support to the production of high added value and chemical
residue free vegetables and the organization of the commercialization channel of the farmer
production to hotels, restaurants and supermarkets of Phnom Penh; thus directly
contributing to the increase of farmers’ incomes.
Currently about 350 farming families are generating additional income through the sale of
high value European vegetables of good quality to luxury hotels and restaurants of the
capital Phnom Penh. Owing to the chain of distribution approach, the PUAC is able to step in
at any level, from the farmers’ training to production organization so that it becomes more
stable.
PUAC is well-known for the commercialization and horticultural production. A study on the
small holders’ cash crops production and marketing reported that several buyers in Phnom
Penh consider the PUAC the currently the most reliable supplier for high value, chemical-
free leafy green vegetables, particularly for salad ingredients used by restaurants that are
tourist- and expatriate oriented.24
Throughout the years, the initiative has undergone several changes. The current
consolidation project aims at guaranteeing the expansion of the model on the one hand, and
the durability of the established structure and of its main objective – to increase the poor
Kampong Speu families’ income - on the other. 25
An impact study conducted in 2010 points out that the project has led to improved
livelihoods, especially to increased income from the sale of European organic vegetable for
those whose are farmer members. The participating families derive 33% of the total
agricultural income from the sales of European chemical-free vegetables. The families also
improve their vegetable consumption. The estimate is that on average each family
consumes 20 kg of European organic vegetables.26
23
http://www.puac.info/
24
Psilos, P and Charlesworth, P, SNV, 2009.Linking Smallholder Cash Crops to the Tourism Sector Project
Design submitted to SNV, (Netherlands Development Organisation), p. 3
25
http://www.ong-adg.be/spip/Cambodia-Market-gardening.html?lang=fr
26
Prom Tola, 2010. PUAC Impact Study, Peri-Urban Agricultural Centre, (PUAC)

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The agricultural cooperative was created by 145 farmers in June 2009 and took over the
function of the NGO structure. Besides the 255 members (as of the end of December 2010),
other farmers produce occasionally for PUAC. In total about 310 families cooperate with
PUAC. Many of them however, do produce not regularly. At any given time, only between 80
farmers plant vegetables during the low season) and 150 in the high season In 2010 PUAC
farmers produced about 80 tons and sold 50 tons of various vegetables through the
cooperative. Approximately, 15 MT is sold by the farmers directly to other buyers by PUAC
marketing staffs PUAC’s target is to sell 70 tons annually to improve the viability of the
operations.
PUAC is supplying year-round produce to about 61 clients in the Phnom Penh restaurant
and hotel market. In the recent two years, PUAC has lost some of its important clients and
with it a significant part of its market due to competitors who have been able to closely
observe PUAC’s business. Partially the competitors obtain their supply from farmers in the
periphery of PUAC’s farmer network. As a result, PUAC’s sale dropped by over 10 tons/year.
A critical part of PUAC’s strategy is an extension service that visits each farmer 2-3 times
per week to ensure the growing plan is being adhered to and that any issues are attended to
rapidly. Despite their success, PUAC is still facing several issues such as contract
compliance from producers and maintaining constant, good quality supply.27
The cooperative utilizes a grower selection process, strict contracts, backed-up by intense
extension visits to ensure the resulting production is the market required quality. Psilos and
Charlesworth observed that over time PUAC developed a tight management structure that
supports a rapid and effective feedback loop, from buyer to marketing unit to production unit
to farmer and back. This organization allows them to synchronize planting, harvesting, and
buyer ordering, year round.28
Whereas in the beginning PUAC made the availability of water a requirement, it now
provides if necessary irrigation equipment. This support allows PUAC to select farmers
based on their commitment, work-force, and agriculture surface only, without looking at prior
water access. This equipment is subsidized by 50 percent.
For the day to day work, PUAC relies on 32 so-called master farmers who aide their fellow
farmers in the production. The master farmers see to it that production plans are met.
Besides advising the members in cultural practices, they also monitor if the farmers follow
27
Psilos, P and Charlesworth, P, 2009, p. 20
28
Psilos, P and Charlesworth, P, 2009 p.58

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PUAC’s protocol or production guidelines. Concerning certification, PUAC observed that
most clients are satisfied with the quality they obtain and are not really interested in certified
vegetables.
Conversely, PUAC observed that individual clients are increasingly inquiring on how PUAC
assures quality is checked. According to PUAC, this is due to the fact that competitors claim
to sell local “organic” vegetables, even so if they are purchased then from China or Vietnam.
Because of this development, PUAC sees the need to develop an internal control system
that will assure the compliance with PUAC’s protocol which disallows the use of farm
chemicals.
Farmers mange soil fertility through the application of compost and straw mulch. To reduce
the impact of the sun, several crops are protected with a net. PUAC provides the seeds to
the farmers. The seeds are imported from Vietnam; however, they are produced by
European and Chinese growers. As the current systems cannot fully assure that all growers
are following the protocol, PUAC plans to conduct a survey on the actual practices of the
farmers in near future.
PUAC supplies about 30 different kinds of high value European leaf plants, aromatic plants,
fruit plants, and some root plants. PUAC has a storage facility in Phnom Penh and a fleet of
vehicles and motorcycles to distribute every day products from the farms to customers.
PUAC‘s top clients by quantity purchased:29
Lucky Market
Sunway Hotel
Intercontinental Hotel
Phnom Penh Hotel
Hotel Cambodiana
Thai Huot Supermarket
Living Room Restaurant
Boddhi Tree Restaurants
29
PUAC: http://www.puac.info/Chemicalfreevegetables.php

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Vegetable producers cooperating with CEDAC
CEDAC had started its involvement in the trade with organic products with rice. As the
marketing of rice expanded, CEDAC realised an increasing demand for chemical-free and
organic vegetables. Even as the first attempts to establish a supply of vegetables were not
continuous, overtime more than 70 farmers got involved to produce for vegetables for
CEDAC. Unlike other initiatives, most farmers grow traditional vegetables appropriate to the
local conditions.
In 2010, about 53 small farmers in the provinces of Kandal, Kampong Chhnang, Takeo,
Kampong Speu, Kampot and Pursat were supplying 38,870 kg chemical free vegetables to
CEDAC. In 2009, about 30 tons of vegetables were traded.
The farmers are able to produce about 30 kinds of vegetables, among them:
Chinese kale, cauliflower, head cabbage, green petiole, mustard green, leaf lettuce, tomato,
Chinese cabbage, water convolvulus, bunching onion (oriental green onions), yard-long
bean, bitter gourd, sponge gourd, cucumber, wax gourd, egg plant and pumpkin. In addition
to these, the group of vegetable growers in Pursat can produce among others: head
cabbage, cauliflower, carrots, green petiole, and Chinese radish, etc.
The organic vegetable growers supplying CEDAC have established an internal control
system (ICS). Specially trained farmers check the other members to guarantee that
everybody is following organic production standards. However, they are not certified by a
third party.
In 2009, a team led by a junior expert of the German Development Service (DED) conducted
a survey to examine the situation and the agricultural practices of the vegetable growers
cooperating with CEDAC. The team identified major challenges to organic/chemical free
vegetable production. The questions covered seed production, agricultural practices, pest
and diseases and marketing aspects.30
Major outcomes of the survey:
• A major obstacle is the high dependency of the farmers on rain fall. Especially
during dry season cultivation is many places no longer possible.
• During the rainy season, many vegetable areas are waterlogged.
30
Meusinger, Anna, 2009. The current status of chemical free vegetable producers in Cambodia, DED and
CEDAC

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• Most farmers are producing on less than 1,000 square metres. This was
considered too small to achieve a commercially viable scale.
• The farmers only have basic knowledge about chemical-free or organic
vegetable production. Farmers are struggling to produce in a sustainable way
and meet consumers demand in Phnom Penh.
• In many cases the overall farm management is not satisfactory and farmers
lack skills to improve cultivation techniques.
Many farmers are confident in
• preparing and using botanical pesticide,
• producing solid and liquid compost,
• growing crops on elevated beds
• producing seeds of leaf lettuce
• using sprinkler irrigation
On the other hand it became clear that most of the participating farmers lack knowledge on
appropriate practices for land preparation and lack knowledge who to mange pest problems
according to the organic standard. Likewise many farmers lack knowledge on predators or
plants which could help to repel pest and disease management. Similarly knowledge about
crop rotation or intercropping is inadequate.
The farmers often have to cope with the low germination rate of purchased seeds and are
not well versed concerning the selection and storage of own seeds. Also their knowledge on
cultural practices such as knowledge about crop rotation or intercropping is not sufficient.
In addition, many vegetable farmers also find it difficult to prepare a production plan to
produce based on such a plan to match CEDAC Enterprise’s needs.
Most surveyed farmers stated the major reason for the conversion to organic vegetable
cultivation is the positive effect on their health. Especially in Kampong Chhnang farmers
showed a strong concern about their health. Many of them had appalling experiences with
the use of pesticides. Farmers in Kandal and Kampong Speu mention higher yields after the
conversion as a reason. Most farmers are sure that they are improving their soil quality.

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When asked what they consider as the major challenges in vegetable production, more than
90% of all interviewed farmers answered pests and diseases which affect the quality of the
vegetables. Irrigation is the second important concerns of the farmers. About 13% of all
farmers consider soil fertility management as a relevant issue.
Most respondent appreciate the easier access to information about market developments,
prices and new technologies and that CEDAC is supporting them with technical assistance
and guidance. However they consider the nearness to conventional growers as a threat to
the organic production. They are afraid of chemical residues in soil, water and the drift of
sprayed chemicals. They do not have enough capital to invest in contamination barriers.
The study looked chiefly into aspects of the production, it suggests evaluate separately the
post harvest practices and the transport to Phnom Penh. Commonly vegetables are not
optimally stored during transport and suffer from unnecessary exposure to heat. 31
Many farmers are reluctant to commit to contracts as they feel it difficult to fine tune their
production plans to better meet the demand. Representatives of the producer groups and
SAHAKREAS CEDAC meet regularly to set the prices. Generally, prices are 10 percent
higher than conventional vegetables.
In addition to the small farmers, CEDAC is venturing into vegetable production on a 150
hectare site in Kirirum, Kompong Speu province, with fertile soil and water supply. CEDAC
31
Meusinger, 2009. page 36
major challenges
0
2
4
6
8
10
Kandal Kampong
Speu
Kampong
Chhnang
Kampot Takeo
provinces
numbersoffarmers
Irrigation
Soil fertility
Pest&Diseases
Labor force
Land availibilty
Market access

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sees this as an opportunity to supply organic vegetables to meet the demand for healthy
organic vegetable of customers in Phnom Penh.32
Vegetable producers groups cooperating with CEDAC
1. Kampot province: The organic vegetable producer group is located in Bous
Brabeak Village, Trabeang Thom Commune, Teouk Chhou District,
7 members, cooperating with CEDAC since 2008.
2. Kampong Speu PROVINCE: Kaheng Village, Kaheng Commune, Som Raong
Toung District,
3. Kampong Chhnang, several villages near Kampong Chhnang town,
42 members in seven groups, cooperating with CEDAC since 2007.
4. Kandal province: Chom Bork village, Bak Kheng commune, Mok Kom Poul
district,
5. Takeo province, 8 members in Tram Kork district,
6. Tom Peaov village, Bramaoy Domry commune, Veal Veng district, Pursat
province.
8 members (6 female), cooperating with CEDAC since 2007.
International Volunteer Center of Yamagata (IVY)
The civic organization International Volunteer Center of Yamagata (IVY) was established in
1991 in Yamagata City, Yamagata Prefecture, in northeastern Japan.
In Cambodia, IVY is implementing a project for regional development in order to reduce the
poverty of farming villages.
IVY supports two Village Women's Association Farmer Associations (VWAFA) which are
engaged in vegetable cultivation. One association focuses on chemical-free production. 102
vegetable growers intend to obtain a certification for chemical-free production. In 2010,
COrAA assisted IVY with a first training to set up an internal control system (ICS). As of
writing, IVY is about to start with the set-up of an ICS system among interested farmers.
32
CEDAC, 2009. CEDAC Hosts Organic Vegetable Farm Visit for Customers and Journalists,
http://www.cedac.org.kh/ev_pdf132.pdf

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In 2009, the 400 VWAFA members of both associations produced about 77 tons of
conventionally produced vegetables. The bulk was supplied to one hotel in Bavet City. The
chemical-free producers sell the vegetables chiefly in the locality. The farmers produce
among others cucumber, water convolvulus, Japanese celery, leaf onion and green
cabbage.
By March 2012, IVY plans to establish the Svay Rieng Vegetable Supply Association which
will be operated mainly by its members, and will establish a systematic delivery.
Furthermore, IVY will train the farmers to improve skill of vegetable growing and support the
association to operate a Natural Agricultural Shop. On the agenda are as well the
development of additional products and the strengthening the capacity of the associations to
manage their business.
Other vegetable growers
Les Jardins du Mekong
In his farm in Pum Taskor, about 8 kilometers outside Phnom Penh, Mr. Philippe Ammeux
produces seven varieties of French salad -- green Batavia, red Batavia, green oak leaf, red
oak leaf, frisee, romaine and roquette -- and three herbs: basil, coriander and dill.33
Mr. Nake Tharen (Natural Garden)
In a 1.5 hectare farm in Koh Kra Bei village, Sangkat Prek Thmei, Khan Mean Chey, Phnom
Penh Mr. Tharen produces a variety of lettuce, tomatoes and on smaller scale eggplants and
other vegetables. The farm has its own water supply through ponds. In the same area, Mr.
Tharen is preparing another small farm for chemical-free vegetable production and intends
achieve organic certification.
Khmer Harvest
The farm owned by Ms. Deng Polyda is located Tum Nun Kap Srov, Sang Kat Chom Chav,
Khan Dong Kor, Phnom Penh. Ms. Polyda produces among others several kinds of lettuce,
broccoli, water spinach, herbs and radish.
Triple F
Triple F manages a vegetable farm a few miles from Siem Reap which employs 17 people
and provides a direct daily supply of organic vegetables such as lettuce and tomatoes.34
33
FCC Cambodia, 2010. Organic Farming Takes Root, The Wires, December 2010
http://www.fcccambodia.com/newsletter/1210/cambodia-organic.php
34
http://www.triplef-kh.com/about_us.html

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Conclusion
There are a good number of vegetable farmers who either produce organically or chemical-
free. Although there is quite some variety, many focus on leafy vegetables, especially lettuce
which can relatively easily be cultivated and entail little risk of crop failure.
However, the high end market for organic/chemical-free lettuce appears to be saturated to a
certain extent. This begs the question, which other European vegetables in demand can be
gainfully produced in the tropical lowlands. Testing of more varieties from other countries
might enable growers to diversify production. Varieties used in conventional production are
often not suited for organic production as they were bred and selected to meet criteria such
as size and color but to a lesser degree resistance to pests or diseases.
The other option is to focus on traditional vegetables as farmers cooperating with CEDAC
do, or to integrate more of them as PUAC does.
One bottleneck apparently is the management of soil fertility. The use of commercially
produced compost, often labeled as organic fertilizer poses a problem. In organic systems
these could only be accepted if the sources of the biomass are clearly organic. Compost
derived from household waste from dump sites is not acceptable at all in organic production.
A safer way would be to integrate green manure crops in the crop rotation to maintain soil
fertility. However, this would mean to take out a certain percentage of the area for
production. Nitrogen fixing shrubs can likewise help to produce biomass for mulch and
composting. Use of high value legume crops is another option.
So far, no operation in the organic/chemical-free vegetable sector has obtained a third party
certification. Some are on the way to improve the compliance with the standards in order to
be certified based either on the organic or on the chemical-free standards.

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Cashew Nut
The cashew, botanically-known as Anacardium occidentale, is the seed of a tropical
evergreen tree related to mango, pistachio, and poison ivy. Originating in Brazil, the cashew
plant made its way to India in the sixteenth century via Portuguese sailors. From India it
spread throughout Southeast Asia. Cashew nuts became commercially relevant only in the
1920s.
Unlike most fruits, where the seed is found inside the flesh, the cashew seed hangs from the
bottom of the cashew apple. Although the fresh cashew apple fruit is not only edible but
delicious, it is only available to those who grow the plant. It is much too perishable to bring to
market. Cashew apples begin to ferment as soon as they are picked and will barely last 24
hours. Cashew apples are highly prized in their growing locale, where they are sometimes
found canned, in jams, or used to make liqueurs.35
Cashew is a versatile crop with many economic uses in the food industry as food and feed.
Cashew nuts consist to 35-45% of seeds and around 55-65% of shells. The shells contain
15-30% oil. A ton of nuts contains around 200 kg seeds and 180 kg oil (cashew nut oil or
cashew nut shell liquid “CNSL“).CNSL is used as oil in industry. The cashew apple can be
sold fresh as soon as they have been picked, and then used, e.g. as a culinary ingredient, or
further processed.36
Cashew has a high potential for commercial cultivation as there is a steady demand for
nutritious food items and an expanding market for processed and other value added
cashew-based products in the international market. In Cambodia, it is grown in many
provinces including Kampong Cham, Preah Vihear, Ratanakiri, Moundul Kiri, Stung Treng,
Kratie, Kampong Thom as well as in Kandal. It is estimated that Cambodian farmers produce
annually on approximately 120,000 ha about 60,000 tons of raw cashew nuts, three percent
of the world’s supply.
Cashew trees grow preferably on sandy well drained soil and are very appropriate for
organic practices. Generally cashew is produced with a low degree of farm inputs and a
considerable part of the production meets organic standards. Under organic management,
the farmers use compost, cow manure and natural pesticides.
35
http://homecooking.about.com/od/foodhistory/a/cashewhistory.htm
http://www.hort.purdue.edu/newcrop/morton/cashew_apple.html
36
Naturland, 2000. Cashew nuts, Organic Farming in the Tropics and Subtropics, Exemplary
Description of 20 Crops, p.1.
http://www.naturland.de/fileadmin/MDB/documents/Publication/English/cashew.pdf

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A Naturland guide suggests that in organic farming systems cashew plantations should be
complemented with a wide variety of other trees and bushes, because diversified
agroforestry systems are especially suited to the cultivation of cashews.37
Even though raw cashew nut is an important cash crop for Cambodian farmers, the
productivity of plantations is far below its potential. Even without much external inputs, the
introduction of improved planting material and proper manual plant protection the average
yield of 0.4 tons per hectare could be doubled, while the use of external inputs could raise
the harvest to the average yield to the level of 1.6 tons as prevailing on similar soils in the
neighboring countries.38
Assistance to cashew farmers39
The Community Based Rural Development Program (CB-RDP) of the German GTZ assisted
cashew farmers in Kampong Thom in 2006 and 2007. During that time, organic cashew
farmers formed 11 groups with 385 members. GTZ involved several experts including an
Indian specialist and arranged several trainings for the farmers. During 2008 the activities to
assist organic cashew farmers were carried on by the GTZ Trade Promotion Project.
The NGO Srer Khmer picked up from this work when it started working with cashew farmers
in the provinces Kampong Thom and Kampong Cham. With funding from IFC, the NGO
facilitated the formation of 120 farmer associations, 83 associations in Kampong Thom and
38 in Kampong Cham.
As of December 2010, 3,968 farmers joined the associations. Together they manage 8,249
hectare, yielding 5,774 tons of raw cashews (assumption: 1 ha yields 700 kg).
An essential part of the work was to facilitate the establishment of an organic certification
system by setting up group based internal control systems (ICS). In 2010, 700 producers
were already certified as Organic, In February 2011 additional 3,268 producers (phase 2)
were inspected and certified.
In the course of the implementation of the program, the few farmers who were applying
pesticides or herbicides, abandoned the use and became interested to convert to organic
farming. Farmers started using organic alternatives such as botanical pesticides and natural
fertilizers. They likewise started to prune the trees, which helps to significantly improve
yields. Some key farmers set up nurseries to develop new varieties and sell to other farmers
37
Naturland, 2000. Cashew nuts, p. 3
38
Sun Vibol, 2007. Organic Cashew Production in Kampong Thom and Kampong Cham, final report,
GTZ, Cambodia
39
The information in this section is based on Pou Sovann, 2010. Cashew farmer groups training,
Presentation during launching of Prospects for Cambodia’s Cashew Sub-sector, IFC.

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who want to expand their orchards. To enhance the learning of the farmers, Srer Khmer
developed training materials which are highly appreciated by the farmers.
Likewise, the farmer groups increased their bargaining power in dealing with traders. They
also became aware of more selling options and are able to exchange market price
information between the two provinces.
According to Srer Khmer, the members of the associations are interested to learn more in
addition to the training courses and request more training materials. As a result, farmers
start to treat their cashew orchards as a business and pay more attention on improving and
maintaining them. Many are now looking for good varieties themselves.
Srer Khmer realized that trainings need to be complemented by on-farm coaching and back-
stopping activities. In addition to selling raw nuts other promising value adding activities such
as the making cashew apple confectionary and cashew wine were explored. Srer Khmer
also observed that neighboring farmers start copying organic methods. Thus, there is a
considerable potential to increase the production of organic cashew.
Since the beginning of 2011, Srer Khmer is implementing the third phase. Srer Khmer will
facilitate more training to further improve the internal control systems (ICS) of the
associations. Another focus is the improvement of the pre and post harvest management.
The trainings will be combined with individual on-farm coaching and follow up activities.
Additionally, more business skills will be imparted.
Concerning the marketing, the project works closely with Mekong Rain Natural Foods Co
Ltd, which paid for the ICS farmer records as well for the international certification. The
partnership aims to overcome the long-lasting neglect of the cashew industry and to turn it to
win-win situation for all stakeholders.
Processing
During the recent decade, the cashew sector suffered severe setbacks when the last of two
processing plants operating in Cambodia shut down. Consequently, most of the raw cashew
nuts have to be exported to the factories in Vietnam. The lack of processing facilities and an
associated drop in farm-gate prices triggered a considerable conversion of cashew orchards
to crops such as cassava and rubber.

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Parallel to the work of Srer Khmer, the company Mekong Rain Natural Foods Co Ltd, which
aims to modernize the Cambodian cashew industry, explored opportunities to process and
market organic cashew nuts. In 2010, Mekong Rain Natural Foods, started to process
cashew nuts at a pilot processing plant and could produce high quality kernels for promotion
and the domestic market. In addition, through servicing international trader clients, the
company gained experience in local in-shell cashew buying.40
In early 2011, Mekong Rain will set up its first cashew nut processing plant in Kampong
Cham province to boost a growing industry that could create thousands of jobs.41
The prices of raw cashews was fluctuating from between 3,000 riel to 4,500 riel per kilogram,
while processed organic nuts would sell for about $8 per kg.
The plant will buy from nearly 4,000 farmers and expects to produce 2,000 metric tons of
processed cashews in the first year. The potential of the plant is about 10,000 metric tons
per year. According to cashew nut trade specialist James Fitzpatick of Ingredient Sourcing
Solutions, the average quality of Cambodian cashews in the 2009 to 2010 season ranked
fifth among the world’s eleven top producers.42
40
McNaughton, A., 2010.Mekong Rains Natural Foods Cambodian Cashew Industry Initiative,
Presentation during the launching of Prospects for Cambodia’s Cashew Sub-sector, IFC
41
http://www.commodityonline.com/news/Cambodia-opens-first-cashew-nut-plant-34357-3-1.html
42
as above

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Mekong Rain aims to establish long-term relationships with leading importers of organic
cashews and will emphasize quality certification such as organic, HACCP, GMP, Halal and
Kosher, ILO labor standards and low carbon footprint.43
During the launching of a report on the “prospects for Cambodia’s cashew sub-sector”,
James Fitzpatrick, emphasized that “Processing encourages growers to produce better
quality product as processors reward quality and export traders worldwide do not.
Processing opens the door to food packing, exports and brand establishment.”44
Organic cashew market
The outlook for the world cashew market has been described in detail by James Fitzpatick in
the study on the Prospects for Cambodia’s Cashew Sub-sector, especially in Chapter 6:
Organic Cashew Market.45
Hence, the mention of a few points may suffice here.
Among the countries producing cashews several countries are able to offer certified organic
cashews. India exports 100 metric tons chiefly to European countries. Several African
countries also export organic cashews as well. The main importers of organic cashews are
Europe (especially Germany and United Kingdom), America, China and Australia.
Organic cashew price move with the market, although fluctuations are less pronounced than
in the conventional market. Premium prices for organic cashews range from 10 to 40
percent, elsewhere contracts settle in the range from 20 to 25 percent.
India has possibly the greatest potential to expand organic production as the production of
cashew is ‘organic by default’. Yet, the nuts are mostly not marketed as such. Once Indian
processors would invest in certification and other requirements, India’s output of organic
cashews could significantly increase in a couple of years.
Conclusion
It is noteworthy that due to the low use of external inputs, many cashew farmers easily could
convert to organic practices. In 2011, almost 10 percent of Cambodia’s cashew production is
already certified organic. This could serve as a model for the rice sector, where certified
organic production comprises only a tiny share, even though there is a considerable
potential for organic certified rice.
43
McNaughton, A., 2010.
44
Hor Kimsay, 2011. Cambodia’s Cashew Industry: A future with great potential, Economics Today,
Vol. No. 78, p.19.
45
International Finance Corporation (IFC), 2010. Prospects for Cambodia’s Cashew Sub-sector,
Cambodia Agribusiness Series – No. 1, pp 89-103.

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An essential requirement is that all stakeholders have a long term vision and are willing to
invest in training and an organic guarantee system as well as to develop confidence in a
lasting partnership. Ideally, such undertakings are supported during the start up phase by a
business development program.

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Palm Sugar
The sugar palm (Borassus flabellifer) is known to be part of Cambodian national heritage
and an important natural resource. It plays an important role in Cambodia’s rural system and
produces several products such as juice, sugar, building wood, fruit and root for traditional
medicine. The sugar palm tree, therefore widely contributes to rural life.
In Cambodia, palm sugar production is a rural activity that generates small amounts of
income for over 20,000 families.46
Palm sugar producers commonly are landless families
who rent palm trees for a fee to be allowed to collect the sap from the Sugar Palm, which
can used for the production of vine, vinegar as well as palm sugar.
As palm trees are neither treated with fertilizer nor with pesticides, can palm sugar generally
be considered a chemical-free product. However, depending on the surroundings the palm
can be affected by farm chemicals applied, for example in rice fields. However, only a small
part of the product is certified.
It is estimated that one sugar palm produces sap in equivalent to 70 kg sugar per year.
(Confirel calculates that a palm provides about 600 liters of sap, which is about 90kg of
sugar.) It is further assumed that on average one palm sugar producer utilized about 25
palms.47
Thus, the annual production of palm sugar in Cambodia could be in the rage of
30,000 metric tons. For Kampong Speu province alone, it is assumed that about 10,000
families exploit 261,898 sugar palm which results to an annual of 18,000 metric tons48
.
Palm Sugar is produced from the sap of palm tree flower. The long and tedious techniques
used during the manufacturing process consume a lot of wood and expose producers to
harmful smoke. As the sugar quality is not consistent, it is not always easy to sell it at a
good price. Traditionally paste and blocks were produced.
In the recent years, an improved technique made it possible to obtain a product which can
be sold in the international market developed, extended cooking for about 15 minutes and
continues stirring while the sugar cools down in the pan.
46
Palm Sugar Stoves, 2009. http://www.geres-cambodia.org/pdf/Project%20Sheet-Vattanak.pdf
47
http://www.foodquality-origin.org/Bangkok/11June/Prak%20Cambodia%20palm%20sugar.ppt
48
http://www.foodquality-
origin.org/Bangkok/Session%20B1/Prak%20Kampong%20speu%20palm%20sugar.ppt

of 58
The sugar palm tree does not require any management for biomass production. But the
leaves should not be harvested when trees are kept for juice collection. Farmers believe
harvesting the leaves has a great influence on the yield of juice. The juice from the sugar
palm tree is normally collected once a day. However, there are high production trees (20-25
kg of juice per day) which should be collected from twice daily.49
Confirel Co., Ltd.
Confirel is a local company founded in 2001 by Dr. Hay Ly Eang, CEO of the company and
principle shareholder. From 2002 to 2003: Confirel explored options for the production
process and the distribution and moved to pilot stage. After an interruption, the company
went into full production in early 2004.
Confirel has a wide variety of products derived from the sap of the sugar palm:50
Palm sugar,
wine, vinegar, cocktail and liquor. Only palm sugar and one kind of vinegar are certified by
ECOCERT as organic products. Confirel produced about 40 tons of certified palm sugar in
2010.
The sap for these two products comes from palms from elevated areas far enough from
agricultural areas. The certification is based on regulations for wild collection. About 30
percent of the organic products are exported; the rest is sold in the domestic market. Confirel
currently buys certified palm sugar from farmers at 4000 Riel/kg.
In addition Confirel handles sugar coming from producers covered by the Kompong Speu
Geographical Indication (GI) for palm sugar.
As the production of palm sugar is seasonal, commonly from December until April, the delay
of dry season in 2010/2011 caused considerable problems for Confirel because it could not
fulfill some contracts on time.
The basic processing is done in the villages, while Confirel refines the sugar further.
However, the farmers have to meet strict requirements regarding foreign matter and
moisture content.
While the originally envisioned exports to France were not as successful as anticipated,
Confirel is now expanding its export to Japan and Taiwan, Domestic demand as well as
exports is increasing steadily. There could be soon a shortage of supply.
49
Khieu Borin, 1997. The Sugar Palm Tree as the Basis of Integrated Farming in Cambodia,
http://www.fao.org/ag/againfo/resources/documents/frg/conf96pdf/khieu.pdf
50
http://www.confirel.com/

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Quality Control
Confirel is very particular about the quality. The sugar is carefully checked before buying.
Additional laboratory tests are conducted in the factory.
To assure a high quality Confirel undertakes several checks at every stage of the production
to ensure the quality of its products. Besides visual and tactile check (shape, taste, texture)
Confirel analyzes samples in its own laboratory. In addition these checks are complemented
through laboratory analysis by the Pasteur Institute of Phnom Penh and the National
Laboratory of Control.
GERES Cambodia
Another actor in the business of high grade palm sugar is GERES with the Vattanak brand.
GERES set up an ‘eco-social entrepreneurship’ to promote and generate market demand for
the products that are manufactured using environmentally friendly, and socially viable
technologies developed and implemented GERES Cambodia and other organizations in
Cambodia.
In 2005, GERES Cambodia introduced the concept of a highly efficient wood-burning stove
for palm sugar production. The first simple, cheap model, known as "Vattanak", has the
advantage of reducing wood consumption while offering combustion quality exceeding
European standards. Moreover, the smoke produced is not so thick. Such energy efficiency
has economic repercussions (savings on wood and better quality sugar), making the stove
popular with small producers.
The stoves were produced and sold by small companies, but GERES provided a loan to the
palm sugar producers. The stoves are sold for $75.00. The families have to pay $ 5 down
payment while the balance is covered through loan by GERES, payable in cash or kind.
Most families supplied sugar to GERES to pay the loan.
Since 2007, GERES Cambodia has been distributing Vattanak stoves and training producers
to install, maintain and use them. The objective for 2009 is to disseminate at least 150
stoves throughout the country.
At the same time, work has been ongoing for some years to professionalize the sector with a
view to doubling producers' income and establishing sustainable management of fuel.
Commonly 6 kg of fuel wood is needed to produce one kg of palm sugar. Improved stoves

Report_Organic Agriculture in Cambodia _COrAA_ April 2011_ final- for web_3

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